May 12, 2023

Consolidated Financial Results

for the First Three Months of the Year Ending December 31, 2023

Company name:

ITOKI CORPORATION

Listing:

Tokyo Stock Exchange

Stock code:

7972

URL:

https://www.itoki.jp/

Representative:

Koji Minato, President

Yoshiaki Moriya, Director, Managing Executive Officer, General Manager of

Inquiries:

Administrative Division

TEL: +81-3-6910-3910 (from overseas)

Scheduled date to file Quarterly Report:

May 12, 2023

Scheduled date to commence dividend payments:

－

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results presentation meeting:

No

(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated performance for the first three months of the fiscal year ending December 31, 2023 (from January 1, 2023 to March 31, 2023)

(1) Consolidated operating results (cumulative)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

First three months of the

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

fiscal year ending

December 31, 2023

36,965

4.6

4,777

20.5

4,824

21.4

3,296

(2.7)

December 31, 2022

35,345

9.9

3,964

133.4

3,974

139.7

3,388

74.4

Note:

Comprehensive income

First three months of the fiscal year ending December 31, 2023:

3,515 million of yen (6.7)%

First three months of the fiscal year ending December 31, 2022:

3,294 million of yen (55.6)%

Earnings per share

Diluted earnings per share

First three months of the

Yen

Yen

fiscal year ending

December 31, 2023

72.80

67.70

December 31, 2022

74.95

－

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

First three months of the

Millions of yen

Millions of yen

%

Yen

fiscal year ending

December 31, 2023

115,841

51,748

44.6

1,140.93

December 31, 2022

115,288

49,910

43.2

1,100.33

Reference: Equity

First three months of the fiscal year ending December 31, 2023:

51,664 million of yen

December 31, 2022:

49,825 million of yen

―1―

2. Cash dividends

Annual dividends

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

December 31, 2022

－

0.00

－

37.00

37.00

Fiscal year ending

－

December 31, 2023

Fiscal year ending December

0.00

－

25.00

25.00

31, 2023 (Forecast)

Note:

Revision to the forecasts of cash dividends most recently announced:

None

Note:

Breakdown of fiscal year-end dividends for the fiscal year ended December 31, 2022

Ordinary dividend:

17.00 yen

Special dividend:

20.00 yen

3. Consolidated earnings forecasts for the fiscal year ending December 31, 2023 (from January 1, 2023 to December 31, 2023)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings per

owners of parent

share

Millions of

Millions of

Millions of

Millions of

yen

%

yen

%

yen

%

yen

%

Yen

Fiscal year ending December

130,000

5.4

6,500

41.8

6,500

55.6

3,700

(30.1)

81.70

31, 2023

Note: Revision to the consolidated earnings forecast most recently announced:

None

―2―

* Notes

(1) Changes in significant subsidiaries during the first three months of the fiscal year ending December 31,

2023 (changes in specified subsidiaries accompanying changes in scope of consolidation):

None

(changes in specified subsidiaries accompanying changes in scope of consolidation)

New:

－ companies

(Company names)

/Exception: － companies

(Company names)

(2) Application of specific accounting for preparing the consolidated quarterly financial statements:

None

  1. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements after error corrections

a. Changes in accounting policies due to revisions to accounting standards and other regulations:

Yes

b. Changes in accounting policies due to other reasons:

None

c. Changes in accounting estimates:

None

d. Restatement of prior period financial statements after error corrections:

None

  1. Number of issued shares (common shares)
    a. Total number of issued shares at the end of the period (including treasury shares)

As of March 31, 2023

45,664,437

shares

As of December 31,

2022

45,664,437

shares

b. Number of treasury shares at the end of the period

As of March 31,

2023

381,835

shares

As of December

31,

2022

381,659

shares

c. Average number of shares during the period (cumulative from the beginning of the fiscal year)

As of March 31, 2023

45,282,688

shares

As of March 31, 2022

45,206,423

shares

  • Quarterly financial results reports are not required to be subjected to quarterly reviews conducted by certified public accountants or an audit corporation.
  • Explanation concerning proper use of earnings forecasts and other specific matters

The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Actual results may differ materially from these forecasts due to various factors. For notes on assumptions for the earnings forecasts and notes on usage of the earnings forecasts, please refer to "1. Qualitative Information on Quarterly Financial Results - (3) Explanation of Forward Looking Information for Earnings Forecasts, Etc." on page 4 of the Appendix.

―3―

○ Appendix Table of Contents

1. Qualitative Information on Quarterly Financial Results

5

(1)

Explanation of Operating Results

5

(2)

Explanation of Financial Position

7

(3)

Explanation of Forward Looking Information for Earnings Forecasts, Etc

7

2. Consolidated Quarterly Financial Statements and Main Notes

8

(1)

Consolidated Quarterly Balance Sheets

8

(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of Comprehensive Income

10

(3)

Notes on the Consolidated Quarterly Financial Statements

12

(Notes on Assumption of Going Concern)

12

(Notes in the Event of Significant Fluctuations in the Amount of Shareholders' Equity）

12

(Changes in Accounting Policies)

12

(Additional Information)

12

(Segment Information, Etc.)

13

(Significant Events After the Reporting Period)

15

―4―

1. Qualitative Information on Quarterly Financial Results

(1) Explanation of Operating Results

In the current fiscal year, which is the final year of the medium-term management plan RISE ITOKI 2023, the Group will continue to promote various measures based on the structural reform project. In the first three months of the current consolidated cumulative period, the Group aimed to become a highly profitable corporation with a robust structure. We strove to increase sales and profit through measures such as proposing new work styles and workplaces in order to fulfill a leading role in creating a post- COVID working environment, and conducting sales activities that focus on increasing value.

(Millions of yen)

Second quarter-end

Second quarter-end

2022

2023

Increase/decrease

Increase/decrease

Consolidated

Consolidated

(amount)

(%)

cumulative period

cumulative period

Net sales

35,345

36,965

1,619

4.6%

Gross profit

13,862

14,748

885

6.4%

Selling, general and administrative

9,898

9,970

72

0.7%

expenses

Operating profit

3,964

4,777

813

20.5%

Non-operating income

125

125

0

0.4%

Non-operating expenses

115

79

(36)

(31.2%)

Ordinary profit

3,974

4,824

850

21.4%

Extraordinary income

786

1

(785)

(99.8%)

Extraordinary losses

44

21

(22)

(52.1%)

Profit before income taxes

4,716

4,804

87

1.9%

Total income taxes

1,381

1,506

124

9.0%

per share

3,335

3,297

(37)

(1.1%)

Profit attributable to owners of parent

3,388

3,296

(91)

(2.7%)

(i) Net sales

Net sales were 36,965 million yen, an increase of 1,619 million yen (4.6%) year-on-year.

  • The workplace business performed well mainly due to renovation projects, office relocations, etc., to fit new hybrid work styles.
  • In the equipment and public works-related business, demand remained strong for public facility equipment such as display cases for museums and art galleries and digital signage remained strong.
  • In the IT and sharing business, there was strong performance by the system development business and the system verification business, which has been promoted as the second pillar. The sharing business for office space also performed well.
  1. Gross profit

Gross profit was 14,748 million yen, an increase of 885 million yen (6.4%) year-on-year.

  • In the workplace business, while predicting the impact of soaring raw material prices, profit increased due to an improved profit margin as the effect of increased revenue and an improvement in value provided.
  • In the equipment and public works-related business, while predicting the impact of soaring raw material prices, profit increased significantly due to the effect of increased revenue caused by increased demand and strong sales of equipment for public facilities, and due to an improved profit margin.
  • In the IT and sharing business, the system development business, system verification business, and office sharing business performed well.

(iii) Selling, general and administrative expenses

Selling, general and administrative expenses were 9,970 million yen, a slight increase of 72 million yen (0.7%) year-on-year. This increase was the result of planned implementation of strategic expenditures, etc., for future leaps in performance such as strengthening IT infrastructure to promote DX. It was also the result of cost reductions such as continuing to cut logistics costs through the structural reform project.

(iv) Operating profit

As a result of the above, operating income was 4,777 million yen, an increase of 813 million yen (20.5%) year-on-year. These results exceeded the forecast for operating profit.

  • In the workplace business, profit increased significantly due to an improved profit margin as the effect of increased revenue and an improvement in value provided.

―5―

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Itoki Corporation published this content on 23 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2023 05:39:10 UTC.